Chart of the Week: Unemployment Rates Based on Education Level

While I have a bias in favor of using home grown charts for my chart of the week, this week one chart in particular stuck in my head, the chart below from EconomPic Data that compares recent changes in the relative level of unemployment to the overall unemployment rate.

It may take a moment for readers to get their bearings on this graph, but in essence it shows that one’s level of education has increasingly become a factor in the likelihood of being unemployed. A decade or so ago, the unemployment rate for someone with less than a high school degree (dark blue line) was about 2% higher than the average for the population, while the unemployment rate for those with a bachelor’s degree or higher was about 2% lower than the average for all workers. By 2009, the gap had tripled to the point that less than a high school degree translated into a 6% higher unemployment rate and at the same time a bachelor’s degree or higher now meant about a 6% lower unemployment rate.

Not surprisingly, data shows that educational levels are highly correlated to income levels and rates of unemployment. While these facts should not come as a surprise to anyone, they certainly explain some of the recent income inequality data and should also have interesting political, social and other repercussions going forward. (Click chart to enlarge)

[source: EconomPic Data, Bureau of Labor Statistics]

Comments

[chris coonan:]

I am skeptical of BLS generated statistics....

for example, the unemployment rate among Architects is at 9 percent, a profession that designs new buildings....and tied closely to construction. Construction is about the hardest hit in the recession, so how can Architects be at 9 percent, or below Average unemployment....just not possible, but that is what the BLS is stating for Q3 of 2009....

if the overall numbers are cooked, like the previous example, it is hard to make correlations to education.

what about the rumor that Walmart is taking over Target Stores? now that is an interesting story....

Nov 09 10:17 AM

[Tony Petroski:]

Government as an increasingly large percentage of the employment pool (soon to include all health providers and insurers) while at the same time relying on credentialism as the basis for hiring and retaining workers.

See George Gilder, 1980, for an extensive explanation in "Wealth and Poverty."

Nov 09 11:04 AM

[ChickenLips:]

Well what do you expect, our laws make it easy for the wealthy class to export middle class jobs overseas. The middle class better wake up and start demanding political change. Good luck trying to pull them away from their TVs!

I have a master's degree and still see many employment opportunities for myself even in this recession. My unemployed high school diploma buddies are struggling right now to find a regular job. Let's get real, the jobs of the future require specialized training, which can easily be obtained at a local community college. It's not my fault that people are lazy and don't want to learn anything!

Nov 09 11:50 AM